Mid-Town Products Inc purchased equipment costing $150,000. Annual operating cash inflows are expected to be $26,000 each year for fifteen years. At the end of the equipment's life, the salvage value is expected to be $18,000. If Mid-Town's cost of capital is 14 percent, what is the asset's net present value? (ignore income taxes)
A) $4,245
B) $2,212
C) $18,000
D) $23,592
A
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